Spotlight

Indian equities appear well positioned to extend their recent advance, with a sustained moderation in crude oil prices and a revival in foreign portfolio inflows providing a more supportive backdrop for domestic markets. WTI crude has continued to retreat, trading around $86 per barrel, while Brent has eased to the $91–92 range. The decline in international oil prices offers some respite from concerns over elevated energy costs, imported inflation and pressure on India's external balances.

Foreign institutional flows have also emerged as a significant source of support, with the market witnessing a notable turnaround from the sustained selling seen in October to consecutive sessions of aggressive net buying. This renewed foreign investor participation has helped reinforce the recent market recovery, improving risk appetite and lending greater confidence to the domestic investment outlook.

Elsewhere, Asian markets are presenting a mixed picture in early trade, with Japan's Nikkei 225 edging up more than 0.10%, while South Korea's KOSPI is trading over 0.40% lower. 

Technical View

Nifty 50

Nifty 50 is likely to maintain a positive near-term bias, although some consolidation may emerge following the sharp recent rally. The immediate resistance is placed in the 25,150–25,200 zone. A sustained breakout above this range could strengthen the upward momentum and extend the rally towards 25,500.
 
On the downside, 24,800 remains the crucial immediate support, followed by 24,600. Momentum indicators continue to favour the bulls, with the RSI pointing towards overbought conditions, while the MACD maintains a positive bias, indicating sustained upward momentum. Overall, the technical outlook remains bullish but somewhat stretched, with intermittent consolidation and profit-booking possible at higher levels. Sustained trading above 24,800 will be important to preserve the positive near-term structure.

Bank Nifty

Bank Nifty continues to demonstrate relative strength, supported by sustained buying interest across banking stocks. The immediate resistance is placed in the 60,000–60,200 zone. A decisive breakout above this range could strengthen the upward momentum and extend the rally towards 60,500–61,000.
 
On the downside, 59,200–59,000 is expected to act as the immediate support zone, followed by the next crucial support at 58,600–58,400. While the broader technical structure remains positive, the possibility of a near-term retracement cannot be ruled out following the recent sharp advance. The near-term outlook remains positive, with sustained buying interest and a decisive move above 60,200 likely to reinforce the bullish momentum.